Tuesday, March 6, 2012

My First Home Grinds to a Halt

The Malaysian Insider has reported yesterday that Putrajaya’s home ownership scheme for low-income earners has come to a grinding halt just a year after it was launched as banks are unwilling to risk loans with monthly repayments worth more than half the applicant’s salary.

The My First Home scheme launched by Najib Razak last March offers 100 percent financing to those aged below 35 and earning less than RM3,000 per month to purchase homes worth up to RM400,000. It was a scheme that was just plain outrageous but knowing Najib, anything that will buy goodwill from Malaysians, he will go ahead and do it, irrespective of whether it is practical or not.

The Chinese-language daily Sin Chew Daily also reported yesterday that a 30-year-loan for RM400,00 with a 4.3 percent interest rate would require a monthly repayment of RM1,780.

“The banking industry finds that with an income of RM3,000, they do not qualify for RM400,000 loans,” it reported, adding that not a single loan under the scheme has been approved.

The scheme’s website also states that to qualify for the programme, the repayment commitment cannot exceed 55 percent of the applicant’s gross income.

I am sure Federal Territories and Urban Well-being Minister Raja Nong Chik Raja Zainal Abidin knows this very well. So it is not surprising that he came up with another idea - the EPF loan scheme - read my blog posting dated February 07, 2012 titled "RM1.5 Billion from EPF". He is doing this only for political mileage. That is why it is targeted at KL folks only. This racket will see the initial EPF funds totalling RM300 million to be loaned to a special purpose vehicle linked to the Federal Territories Foundation which, in turn, is directly controlled by him. And it is public knowledge that he wants to stand as the BN candidate in P121 Lembah Pantai – and ousting Shahrizat Abdul Jalil in the process.

Najib of course, is very good at coming up with these scams but they fade away after awhile. And why not? These schemes are meant to help him win votes, that’s all. He is more concerned about his job – if he loses his prime ministership, what line of work can he go into? Maybe, some escort agency can give him a job – he’ll make a decent living from escorting rich women going on shopping expeditions. After all, he has had lots of experience by being Rosmah Mansor’s husband.

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